Telangana Government’s Rythu Bandhu Scheme seems to have become a big hit with the farmers of the State. The state government is approximately spending 12000 Crore on this scheme which is benefitting 58 Lakh Farmers in the newest state of the country.
This is going to have a massive impact on those families who received the assistance and that will translate into votes in the coming elections. The state government is going to give 4000 Rupees per acre per crop as the Cash Subsidy. This is less than what the state spent on the Loan Waiver.
Economists feel that even though freebies are bad for the economy, this is a better scheme than the Loan Waiver as the money will come hand right at the time of the season to invest. Ideally, the government should have weeded out rich farmers but it did not do so in the election season.
Watching the success of the schemes, many states and political parties are likely to emulate it. If that happens, Rythu Bandhu becomes the Poster of KCR‘s Proposed Federal Front which may have a positive impact on the farmers of the entire country.